Would you open a theme park near Disney World? Or a museum next to the Smithsonian?

Well, a 100-store outlet center just opened in Eagan, four miles from the nation's largest and most-visited shopping mall, the mighty Mall of America. And it has retail watchers buzzing.

"This one in Eagan, everybody's looking very hard at it because it's so close to such a huge regional mall," said Linda Humphers, editor in chief of Value Retail News, an outlet industry publication. "It's unusual. That's one of the reasons everyone's looking at it."

Twin Cities Premium Outlets in Eagan opened its doors Thursday, and officials think having a colossus nearby is a plus. Some 40 million shoppers a year visit Bloomington's Mall of America -- ranking it among the most-visited attractions in the country -- and the Eagan outlet is hoping to lure some of them southward.

"We've got a lot of experience with regional malls, being the largest (mall) owner in the U.S., and we've been building premium outlets for 35 years," said Mark Silvestri, chief operating officer of Simon Premium Outlets, part-owner of the Eagan outlet center.

"Here, because of not just the size of the permanent population, but the tourism inflow, we think it makes for a good symbiotic relationship," he said.

Silvestri makes the case that outlet discount shopping is different than traditional mall shopping, so there's room for both.

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Among those differences, he said: "This is more want-based shopping, rather than need-based shopping."

Nevertheless, the dance between the established superstar and the bold newcomer has already drawn attention, partly because of the role of parent company, mall-operator Simon Property Group.

'COMPETITION IS GOOD'

For years, Indiana-based Simon co-owned and operated Mall of America, until a long and bitter ownership fight with the founding Ghermezian family that left the Ghermezians in charge.

"Simon has a pretty good feel for the business that goes on at Mall of America, having been a part owner and manager for a number of years," said Jim McComb, a Twin Cities retail analyst.

In Eagan, McComb said, "They saw the opportunity to bring in lower-priced merchandise to the Twin Cities area, and fill a niche that wasn't filled at Mall of America. They've signed a number of stores that are in the designer category that aren't at Mall of America, but designer merchandise has never done well in the Twin Cities. ... The outlet store brings that to town at a lower price point."

The new Eagan center does have its share of unique fashion outlets, including 7 For All Mankind and Saks' Off 5th.

Yet the bulk of its stores are familiar to Twin Cities' shoppers because so many are already at Mall of America.

Of the 56 outlet clothing stores opening in Eagan, more than half -- 31 -- already have full-priced MOA stores four miles to the north.

That's the contest that retailers are watching. Dick Seesel, a retail analyst from Milwaukee, said he was "surprised" that Simon and co-owner Paragon "would place this so close to MOA.

"Since outlet malls seem to be driven more and more by prestige brands like Coach, J. Crew and Polo Ralph Lauren, these are the MOA tenants with the most to lose," Seesel said.

For its part, Mall of America doesn't sound worried -- although it declined interview requests about its Eagan neighbor, instead issuing a short statement.

"Competition is good; it pushes others to do their very best and that benefits everyone," said MOA spokesman Dan Jasper. "We have always said that 'all boats rise together,' and this week is another example of that. We wish them the best of luck in their grand opening."

EMPTY SUITCASES

Mall of America has long enjoyed a lucrative market as a destination for foreign visitors, leveraging its worldwide fame, its next-to-the-airport location and Minnesota's no-sales-tax-on-clothing advantage.

The megamall estimates that about 10 percent of its shoppers are from outside the United States -- and those foreign shoppers are big spenders. Another 30 percent of MOA shoppers are from more than 150 miles away.

McComb has seen the foreign shopper dynamic.

"We've got friends who live in Costa Rica, and when they come to the Twin Cities, they come with empty suitcases and a lot of money," he said. "They just stock up on American merchandise, which in their country is very limited in selection and very expensive. There are thousands of foreign visitors who are doing that."

That's also a slice of business the Eagan outlet craves. It is already touting its easy transportation connection to MOA -- there's a public bus line straight down Cedar Avenue -- and its standing as a place to load up on merchandise.

"That's why we always have a Samsonite outlet at all of our centers," said Les Morris, a Simon spokesman.

But how can a new outlet center compete with MOA's international reputation? Actually, said Simon executive Silvestri, it already does.

"Interestingly enough, Premium Outlets is known around the world and is probably a much bigger brand (than MOA)," he said. "We're in Japan, Korea, Malaysia, Mexico, Canada, and our marketing team is huge. ... So we already have a built-in base of loyal shoppers. When they come to a market, they look for Premium Outlets and put it on their itinerary."

CONTRASTS, COMPLEMENTS

"Right now, probably the best part of the shopping center business is outlet centers," he said. "That's because the tremendous desire of the consumer for a deal. Outlet centers are actually doing much better than traditional malls, they're doing much better than strip centers and power centers. ... The consumer loves brands and wants a deal, so they love outlet centers."

But a contest between the Mall of America and the Eagan outlets? That's crazy, Davidowitz says.

"You can't compare the two; this outlet center is like a little midget," he said.

"Mall of America is an unprecedented extravaganza, it's gigantic," Davidowitz said. "No outlet center can compare to it because it's not a center, it's an extravaganza, and people can come in there and spend the whole day."

Or a weekend. Or more. Mall of America last year opened its first adjoining hotel, and now is adding a second. It is upgrading its dining options, its entertainment array, its public event space, its amusement park, its amenities for foreign visitors. And down the road, it plans a jaw-dropping waterpark, indoor skating rink and other mega-draws.

None of that razz-ma-tazz is available at the Eagan outlet center -- though there will be a Subway sandwich shop, an Auntie Anne's pretzel shop and a Starbucks among its eight food sellers. So comparing MOA with Eagan is apples and oranges, Davidowitz says.

"At the same time," he added, "a number of those customers will want to go to the outlet mall, and that will help the outlet mall. So while they're competitors -- and I understand that everybody fights for footprints -- I think they're going to help each other."

That clustering dynamic is the reason that, yes, rival theme parks do locate near Disney World in Florida, and why museums sprout near the Smithsonian Institution in Washington, D.C.

Not all of them thrive, but some do. Those that succeed create an even greater draw.

Still, Davidowitz warns that if you're living in the shadow of a giant, better avoid going head-to-head.

"If you're a midget, you have to be a niche business," he said. "Otherwise, you're going to get killed. You can't act like the giant. You can't say, 'Come here, we're better than Mall of America.' You can't do that. You'd be crazy."